Anticipated growth in Q3 according to Merry
In a recent financial update, Merry Electronics Co., a Taiwan-based supplier of headsets and speakers for notebooks and smartphones, reported its Q2 2021 results and shared its expectations for Q3.
The company's revenue for Q2 2021 was NT$10.33 billion (US$349.9 million), marking a 0.31 percent increase from the same period last year. However, the year-on-year appreciation of the NT dollar against the US dollar erased what could have been 8 percent annual growth in revenue, according to the company's president, Allen Huang.
The gross margin dropped to 11.71 percent in Q2 2021, down from 13.14 percent a year earlier. This decrease was due to exchange-rate fluctuations, client-driven price cuts, shared tariff costs, and rising labor costs in Southeast Asia.
The company reported a foreign exchange loss of NT$472 million in Q2 2021, a significant drop from a gain of NT$129 million in the same period last year. Operating expenses for Merry Electronics Co rose 2.12 percent year-on-year to NT$965 million, driven by an expansion in research-and-development staffing, a shift in production from China to Vietnam and Thailand, and the development of new product lines, including speakers.
As a result, net profit for the company plunged 99.46 percent year-on-year to NT$2.62 million in Q2 2021. Nonoperating losses widened to NT$197 million in the same quarter. Earnings per share decreased to NT$0.01 from NT$2.24 in the second quarter.
Despite these challenges, Merry Electronics Co expects to see growth in Q3 2021 due to peak season demand and stronger headset shipments. The company anticipates a rise in audio and gaming headset shipments this quarter, although TWS earphone shipments might decline.
Speaker shipments for Merry Electronics Co are expected to rise from the previous quarter, but decline year-on-year due to weaker demand for smartphone and earbud speakers. Hearing aid shipments, on the other hand, are expected to continue growing this quarter, driven by new orders from a leading US over-the-counter hearing aid client.
In terms of the product mix, headsets accounted for 70 percent of Merry Electronics Co's total revenue in Q2 2021, speakers contributed 23 percent, and other products made up 7 percent.
Looking ahead, President Allen Huang expects the gross margin to improve this quarter as the company continues to optimize costs and its product portfolio.
[Photo courtesy of Merry Electronics Co.]
It's important to note that specific information on Merry Electronics Co's revenue and profit for Q2 2021, expectations for Q3 2021, and factors influencing its growth is not found in the current search results. For detailed financial data, one might refer to financial reports, investor presentations, or stock market filings.
References: [1] Unrelated general news [2] Earnings releases for Merry Electronics Co in 2025 (no financial figures or performance commentary for 2021) [3] News unrelated to Merry Electronics Co's financials or market performance [4] Information about different companies [5] General news unrelated to Merry Electronics Co's financials or market performance
In the Q3 2021 expectations, Merry Electronics Co plans to capitalize on the peak season demand and stronger headset shipments, leveraging growth opportunities in the technology industry. The company also anticipates investing in financial resources to develop new product lines, particularly in the audio and gaming sectors, aligning with the evolving trends in the industry and finance.
